FOREX forecast 26.05.2014

EUR is calm after trading negative 3 weeks in a row, currently stopped at 1.3620 support area which is just above the weekly support at 1.3570. Although a test of 1.3570 is possible i do not expect to close the week below. EUR is under pressure because of expectations for ECB to implement new stimulus next month. However the Dollar seems not able to benefit much of the situation and the progress against EUR and other currencies is pretty small and too weak. So this little advantage could easily be reversed and you should be prepaired for that. This week we do not have so important economic events and i think range trade will dominate till Friday.

GOLD continues the extremely narrow range consolidation making indicators flat. For now i am out of the market waiting for a direction. It is possible here to make another jump to 1320-1330 and failing there will start a fresh downside impulse. Upside final resistance is 1365 and downside is unlimited below 1270.

NZD continues to loose positions and looks for support at 0.8470-80. breaking below could easily take the price to 0.8440, but i think that will cap any further downside and a recovery will follow, so it is good to enter long close to that with a tight SL.

AUD is trying to recover to 0.9260-70. Indicators show the recovery has started but is pretty weak for now. Support here is at 0.9230. Daily close below 0.9170 will turn the outlook to bearish, exit all longs here.

JPY is still optimistic below 102.10 resistance and hopes to winn the battle with the dollar, however we are currently closer to the resistance than to support. But to restore the upside we need at least a Daily close above 102.50.

GBP consolidates around 1.6830-40, Daily support is at 1.6770-80 and for now seems it won't be tested, but the pair is waiting for some economic data from the UK this week. Upside may be restored only above 1.6870, range trade until that will continue.